Collection of Levy for Insurance Authority (IA)
M ore than 300 participants from over 90 Member Companies attended a briefing on the above subject on 21 July 2017. Thanks to the detailed explanations provided by IA Executive Director Mr Raymond Tam and his team and officials from the Financial Services and the Treasury Bureau (FSTB), Members now have a clearer understanding of how the collection mechanism should operate (Circular Ref: Mv084/17).
Going forward, the IA will provide an application form for Members to opt for the preferred remittance approach. A summary of the key principles on levy collection will also be made available to Member Companies in August. Members should direct further enquiries, if any, to the IA at levy@ia.org.hk With the Insurance (Levy) Order coming into effect on 1 January 2018, it will be important for policyholders to understand that it is their legal obligation to pay such a levy. In this connection, the IA is formulating a proper communication plan. To this, we at the HKFI will provide all the necessary input / support and make sure that the IA’s publicity programme is rolled out in time to facilitate insurers / intermediaries’ timely communication with their customers.
Risk-based Capital (RBC) Framework
T he IA has launched the first Quantitative Impact Study (QIS 1) for the development of the RBC Regime last Friday. We are pleased to note that the IA has taken into account the technical advice and professional input from members of the Industry Focus Groups nominated by the HKFI.
The data to be collected during QIS 1 will form a vital basis for developing a RBC regime which is viable and practicable to market players. To facilitate Members’ understanding of the QIS 1 exercise and completion of the relevant template, the HKFI will be organising three briefing sessions in August for General and Life Insurance Members (Circular Ref: Mv083/17). Member Companies are encouraged to sign up early for this briefing.
Holistic Consumer Protection Mechanism
We are one big step closer to perfecting our consumer protection regime!
On 27 July 2017, the Insurance Claims Complaints Bureau (ICCB) passed the resolution to approve and adopt the new Articles of Association (AoA) at its General Meeting. The new AoA empowers the ICCB to (i) handle non-claim related disputes; (ii) introduce the new mediation services; and (iii) restructure its General Committee, the governing board, by bringing in non-industry chairman and a majority of non-industry members
to enhance its independence
As a next step forward, a nominating board will be set up by HKFI’s Governing Committee to look for the right candidates to join the new General Committee. The new General Committee is expected to be formed in Q4 2017 together with the change of name from ICCB to “Insurance Complaints Bureau” (ICB).
Details of the mode of operation and procedures for the new mediation services are being worked out. There will be an industry consultation before the official launch of the new mediation services tentatively scheduled for Q1 2018.
Professional Training and Education
O rganize quality insurance training and education to enhance the industry’s professionalism is one of the missions under Vision 2028. And there are three major developments on this front.
First of all, we have partnered with the Hong Kong Securities and Investment Institute to develop an ethics management curriculum tailor-made for the local insurance industry. With the support of the IA, we plan to introduce an industry-wide CPD training on ethics management with a view of enhancing our industry’s professionalism.
Secondly, we launched the first series of Industry Insight Seminar on 6 July 2017 with positive response from practitioners and intermediaries. Based on the feedback of participants, we have modified the structure of the course and will focus on Intermediary regulation under the IA regime, IARB’s self-regulatory regime, Common Reporting System, InsurTech and Online Data Privacy in the future. Commencing September 2017, we will run this seminar series every month for the benefit of all industry practitioners.
Establishment of an Insurance Claims Database for the Prevention of Fraud
T he Hon K P Chan raised a question on Insurance Claims Database at the Legislative Council on 12 July 2017. We are pleased to note the positive response from FSTB and IA, i.e. the Government and IA welcome the establishment of the database as it will help combat insurance fraud and protect the interests of policyholders. They have also indicated their readiness to provide assistance and support to the HKFI as appropriate, including the stepping up of public education on insurance fraud as a serious crime.
An e-newsletter on the result of Proof of Concept was issued to all Members on 19 July 2017. Affirmative feedback has been received showing support to the database. Members are advised to take note of the funding model and make appropriate provisions in their upcoming business / budget planning (Circular Ref: Mv085/17).
Another milestone will be the courses we are going to launch under the Government-funded Pilot Programme to Enhance Talent Training for the Insurance Sector (Pilot Programme). Partnering with reputable institutes including HKU SPACE, CityU SCOPE and ANZIIF, we are bringing to industry practitioners new courses / seminars on:
● FinTech
● Anti-money Laundering
● Insurance and RBC
● Cyber Security Risks for Underwriters
● Executive Certificate in Medical Insurance and Health Management
● Executive Certificate in Marine Insurance
In October, we will first launch a half-day seminar conducted by Professor Rob Merkin on “Developments in Insurance Law in the Common Law World”. Details will be made available soon at https://event.hkfi.org.hk/event. Stay tuned!
Meanwhile, in view of the fact that more and more Members accept visual images / 2D data, e.g. photos of damaged vehicles, lost items, official receipts, medical certificates etc., as evidence for claims justification, we have engaged the Hong Kong Applied Science and Technology Research Institute (ASTRI) to develop a new technology solution to process unstructured 2D data. This value-added feature will definitely enhance the fraud detection capabilities of our Database.
Young Insurance Executive Development Programme (YIE)
T hanks to the enthusiastic support of our Member Companies, four new student-trainees joined the July 2017 cohort and embarked on a new and promising journey in the insurance world. They are the third batch of YIE recruits enjoying the subsidy under the Government’s Pilot Programme, i.e. additional salary and the chance of joining an immersion programme overseas.
Riding on this YIE platform, we hope to attract more young talents to join and help grow our industry in the years ahead.
HKFI Annual Report 2016/2017
We are always ready to embrace new ideas!
To go green and embrace the e-trend, we have issued the first ever light edition of the HKFI’s Annual Report. You can read the contents online simply by scanning the QR codes of the chapters. This new look also marks our transformation as we are stepping into a new era – HKFI’s 30th Anniversary in 2018! Full e-version is also available at our website at http://www.hkfi.org.hk/#!/ resources-centre/ar-2016.
Hong Kong Insurance Awards 2017
E ntries for the Hong Kong Insurance Awards 2017 closed today. Top three finalists for each category will be selected and invited to make a presentation before our distinguished panel of judges in September. The final winners / winning teams will be announced at the Awards Presentation Ceremony cum Gala Dinner to be held on 26 October 2017 at the InterContinental hotel. Book your table now to join this prestigious awards presentation!
Cross-strait, HK and Macau Insurance Business Conference 2017
T he above conference will be held in Taipei on 1 and 2 November 2017. You are cordially invited to sign up for this signature event and join the Hong Kong delegation (Circular Ref: SL/ML/ek/17-008). Act now so you don’t miss out on this chance to exchange ideas and discuss topical issues with seasoned industry practitioners from across the Greater China region.
Membership News
Change of Authorized Representative
Summer Greetings
T he next issue of the Monthly Brief will be published in September 2017. Wishing you all a relaxing and refreshing summer break!
● Cigna Worldwide General Insurance Company Limited (General Member) – Mr Patrick David Graham
● Cigna Worldwide Life Insurance Company Limited (Life Member) – Mr Patrick David Graham
● QBE General Insurance (Hong Kong) Limited (General Member) – Mr Mark Walker
HKFI Membership
As at 31 Jul 2017, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.
